Kentucky Mortgage Lender

Removing PMI on Conventional Loans Automatic – Occurs when a borrower hits 78% LTV of the scheduled amortization. Cannot be used if borrower pays down balance to get to 78% faster than scheduled. Borrower requested (original value) – Most often occurs when a borrower pays down a balance faster than scheduled and requests PMI to be removed based on the value used at closing. Borrower requested (new value) – Occurs when a borrower requests PMI removal based on a new appraised value, and the loan has been open for at least two years. Here are additional information about requirements that may or may not be required when a Homeowner is removing PMI on Conventional Loans. The Homeowner should always consult their Servicer before taking any action, including ordering an appraisal. In most cases, the Servicer will need to order the appraisal themselves or they could have additional overlays/restrictions for removing PMI on Conventional Loans Removing PMI on Conventional Loans Kentucky Mortgag...

Kentucky Mortgage and PMI Breaking down PMI PMI can be a nominal price to pay for being able to secure a home loan with today's mortgage rates. What is PMI? For homeowners who put less than 20% down, Private Mortgage Insurance or PMI is an added insurance policy for homeowners that protects the lender if you are unable to pay your mortgage. It is not the same thing as homeowner's insurance. It's a monthly fee, rolled into your mortgage payment, that’s required if you make a down payment less than 20%. While PMI is an initial added cost, it enables you to buy now and begin building equity versus waiting five to 10 years to build enough savings for a 20% down payment. While the amount you pay for PMI can vary, you can expect to pay approximately between $30 and $70 per month for every $100,000 borrowed. *Assuming an insurance rate of 0.51%; this cost can be cancelled from your payment once you reach 20% equity in your home for conventional loans, but not FHA loans **Does not ...

What is Mortgage Insurance? If you can’t pay your mortgage, mortgage insurance protects your lender from financial loss. It doesn’t provide any coverage for your home; it only protects your mortgage lender. If you put less than 20% down on a home purchase, the lender considers your mortgage to have a higher risk. Therefore, mortgage insurance protects their investment if you stop making loan payments. When Are You Required to Have Mortgage Insurance? Different mortgage types and lenders have varying mortgage insurance requirements. While some may require mortgage insurance as a monthly payment, others may require an upfront fee or a combination of both. Conventional Loan Mortgage Insurance Requirements If you have a conventional loan through a private lender and put less than 20% down, a lender can require you to purchase private mortgage insurance (PMI). While some lenders require the borrower to pay for the mortgage insurance, other lenders offer lender-paid mortgage insurance. In ot...

Frequently Asked Questions about MI What is private mortgage insurance? Private mortgage insurance provides a significant layer of protection to lenders, helping them reduce — and sometimes eliminate — foreclosure losses on low-down-payment loans. As a result, private MI helps families buy homes with minimal cash out of pocket, making the American dream of homeownership attainable sooner than otherwise possible. What's the difference between private MI and FHA insurance? Private MI is the private sector alternative to Federal Housing Administration (FHA) mortgage insurance, which is a government program backed by taxpayers. Private MI typically may be cancelled sooner than FHA. Are private mortgage insurance and mortgage life insurance the same thing? No. Mortgage life insurance pays off a mortgage if the homeowner dies or becomes disabled. Are Private MI and Homeowners Insurance the same thing? No. Homeowners' insurance protects homeowners from loss due to ...

HUD Lowers FHA MIP FOR KENTUCKY FHA MORTGAGE BUYERS  EFFECTIVE JANUARY 26, 2015 Louisville Ky Mortgage Lender FHA/VA KHC USDA Kentucky Mortgage: NEW LOWER FHA MORTGAGE INSURANCE FOR KENTUCKY http://t.co/Ym6DTomWw   January 10, 2015   U.S. Dept HUD released Mortgagee Letter 15-01 today, which outlines plans to reduce the annual MIP (i.e., monthly MI payment) for certain section 203(b) Kentucky FHA-insured loans with Kentucky  FHA case numbers obtained on or after January 26, 2015.   KENTUCKY FHA MORTGAGE INSURANCE CHANGES 2015 Further details, effective date and action plan are outlined below:    Effective Date The reduced annual MIP (i.e., monthly MIP) premiums announced in this ML are effective for eligible Kentucky FHA loans (see below) with a case number issued on or after January 26, 2015. Streamline Refinances for Kentucky FHA Mortgage Loans The annual MIP (i.e., monthly MI) rate will remain the same for Streaml...

Conventional Mortgage Insurance for a Kentucky Mortgage Loan Approval There are different types of  traditional monthly PMI for Fannie Mae Conventional Mortgage Loans in Kentucky. Single Financed MI, and monthly mortgage insurance.  The Major MI companies for most Kentucky Fannie Mae Mortgage loans are underwritten by  Radian, MGIC, UG and Genworth. Most companies will not approve MI on a loan if the DTI exceeds 45%.  The max LTV we will finance is 95%.  For further underwriting details and MI rate quotes, please contact Joel Lobb Senior  Loan Officer (NMLS#57916) American Mortgage Solutions, Inc. 800 Stone Creek Pkwy, Ste 7, Louisville, KY 40223  phone:  (502) 905-3708  Fax:      (502) 327-9119 kentuckyloan@gmail.com  Company ID #1364 | MB73346 http://mylouisvillekentuckymortgage.com   Fill out my form for your free Kentucky Mortgage Loan Prequa...

Fill out my form! The different types of mortgage insurance available for Louisville Kentucky Mortgage Loans • Annual Plan  – The first year premium is collected at closing, and then monthly payments are held in escrow for the following year. • Monthly Plan  – Two months of MI is paid at closing, then collected monthly as part of the mortgage payment. • Zero Up–Front Plan  – Use that money for the down payment instead, as MI is paid monthly with the first mortgage payment, not at closing. • Single/Financed Premium  – Entire MI premium is paid at closing, and can be paid with down payment assistance or financed into the loan. • Split Premium  – A combination of single premium and the monthly plan; the seller can help with the up–front premium or it can be financed in, resulting in lower monthly premiums. • Single Premium Le...

How to Avoid Paying Private Mortgage Insurance | Equifax Finance Blog If you’re  getting a mortgage , you will first need to understand the term  private  mortgage  insurance , also known as PMI. PMI, which nearly became extinct during the real estate boom years, is an insurance product created solely for the benefit of a lender, although the borrower usually pays it. It gives limited protection to a homeowner’s lender if a loan goes into default and foreclosure. Traditionally, when getting a mortgage, if you have a 20 percent down payment, you won’t need to worry about PMI. But if you have less than 20 percent to put down toward the purchase of your home, or if you are trying to refinance your existing home and its value has gone down, you might have to consider paying for PMI. You will generally pay for PMI with your monthly loan payment to your lender. However, there are loan programs that might allow you to make a one-time payment or a yearly payme...

How to Avoid a Mortgage PMI Mortgages with loan-to-value (LTV) ratios over 80 percent--meaning the amount of the loan is more than 80 percent of the home's value--typically require private mortgage insurance. This insurance protects the lender against losses in the event of foreclosure. By law, the PMI is removed automatically when the LTV reaches 78 percent. You can also request that it be removed if you can prove the LTV is at 80 percent or less, or you can try to avoid PMI altogether when you first take out the mortgage. 1 Determine whether you can afford a 20 percent down payment. Conventional loans require PMI when the balance of the first mortgage exceeds 80 percent of the home’s value, or LTV. So the simplest way to avoid PMI is to put 20 percent down when purchasing a home. In June 2010, the median home price in the Bay Area was $465,000, meaning the median down payment needed to avoid PMI was $93,000. 2 Find a second mortgage to close with the fir...